Update on Buybacks program

General
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Update on GIP-100

After almost 5 months of the approval of GIP 100, we are providing an update on the status of the buybacks performed by karpatkey. The main objectives of the buybacks are to transfer value to long-term GNO holders, establish a valuation floor above book value, and enhance GNO’s investment appeal to support DAO growth and visibility. Currently, total buybacks performed amount to $17M with $13M remaining to reach $30M (see here).

Summary

  • $15m TWAP over 6 months.

    • $10M executed with $5M remaining.
    • Due to ETH’s volatile nature (and its downward trend since the proposal was passed), combined with some days in which the TWAP did not run, more than 16% remains. These will be compensated after the six months have elapsed by extending the TWAP.

  • $15m Buyback at KPK Discretion

    • From these, $7M were executed and there are $8M remaining.

Breakdown by Chain & Asset

  • 60% of the buybacks have been performed in Gnosis Chain, while the other 40% in Ethereum.
  • 66% of the buybacks were performed utilising ETH (or LSTs), amounting to $11.3M, and the rest, with $SAFE ($5.7M).

Ongoing Efforts and Future Plans

  • At the moment, there are two TWAPs running:

    • $5M of the 6 month TWAP, performed utilising wstETH.
    • 2.7M $SAFE, sold in chunks every 30 minutes, running until November 20th.

  • 5 of the 6 months have transcurred but there’s still more than 16% of the budget left to be utilised. We have identified recurring selling pressure, and decided that it is important to have firepower to perform market buys while we see that it still exists. We are mandated to buy the largest amount of GNO as possible. Using all of the budget now would create a spike in GNO’s price, growing market impact. We believe prolonging the buyback period will allow us to absorb such sell pressure, flattening the volatility of the token.

  • We have also reached an advanced stage in negotiating an OTC agreement to purchase GNO from a party relevant to the market, with the goal of reducing market impact and supporting price stability.

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I’ve been closely monitoring the buybacks and am surprised at how slowly they’re progressing, especially with GNO/ETH prices at an all-time low. I don’t understand why such a simple task hasn’t been executed more efficiently under these market conditions.
Naturally, when you proceed at this pace, having to purchase $20 million worth in the last 50 days, it creates a market spike.

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Update: The OTC transaction has been completed, 600,000 USDC was used to purchase 2,299.82 GNO at an average price of 260.89 USDC per GNO. This is seen on the Dune Dashboard.

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Completion of GIP-100 Buyback Programme

We are pleased to provide a final update on the GIP-100 Buyback Programme. The programme initiated to transfer value to long-term GNO holders, establish a valuation floor above book value, and attract attention to the DAO’s products and community by enhancing GNO’s investment appeal, has now been completed. See our Dune Dashboard here.

Summary of fully executed buybacks:

  • $15m TWAP over 6 months.
  • $15m Buyback at KPK Discretion
  • The average price of execution has been $227 per GNO

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Breakdown by Chain & Asset:

  • 64% was executed on Gnosis Chain, 33% on Ethereum and 3% OTC.
  • Assets used to complete the programme:
    • 5,500 ETH was utilised for TWAPs and swaps (56% of total buybacks).
    • 7 million SAFE tokens were sold using TWAPs (29% of total buybacks).
    • 3.65 million USDC was used for TWAPs (12% of total buybacks).
    • 820,000 USDC was used for OTC deals (3% of total buybacks).

Final Considerations

Throughout the buyback process, we have closely monitored market conditions, ensuring that purchases were made efficiently to minimise volatility and maximise long-term impact. With this, the buyback programme has been fully completed. We appreciate the community’s trust and engagement throughout this initiative and look forward to continued collaboration on strategies that strengthen GnosisDAO and the Gnosis ecosystem.

If you have any questions or insights, feel free to share them in the discussion thread. Thank you for your ongoing support!

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